tiger sniffing note: electricity supplier giant Amazon on Thursday (October 22nd) released the third quarter of 2015 earnings. Results show that its third quarter net revenues of $25 billion 400 million, an increase of 23%; net profit of $79 million, compared with the same period last year net loss of $437 million, realized losses, for the second consecutive quarter of profit. Well, the Amazon self erected is always at a loss, but its stock price has been high, it seems that the investment people believe that the Amazon model will profit, and perhaps now is the time for the day to come. Well, let’s look at how Amazon makes a profit.
this article comes from the connection, the original title entitled "Get Used to Amazon Being a Profitable Company", author DAVEY ALBA, tiger sniffing interns Li Surui translation.
look at how Amazon achieves profitability,
maybe we should change the opinion of Amazon the nation’s largest e-commerce company. Its identity has not only been confined to e-commerce giants, but also the world’s largest product retailer. Not only that, it also runs the world’s most successful cloud computing business.
just last week, Amazon released its revenue for the third quarter of this year. Reading it together with the second quarter report, we can see that the Seattle based company has achieved a continuous profit on the basis of the fact that "avoidance benefits are conducive to revenue growth". Among them, its AWS cloud services business and North American retail business performance is most robust. * avoiding gains: mainly avoiding interest rates and exchange rate risks, increasing the means of controlling economic instability and controlling risks, meeting the needs of financiers and obtaining excess returns.
, but in fact, AWS is the real winner. Revenue from cloud services accounted for 1/4 ($521 million) of total revenue in the third quarter of Amazon, almost equal to Amazon’s total revenue ($528 million) in e-commerce business in North america. Amazon says operating margins in North America’s e-commerce business and AWS cloud services are 3% and 25%, respectively. All this means that Amazon’s cloud services business is beating other businesses, becoming the main force for Amazon’s earnings.
, meanwhile, was also surprised by AWS’s revenue growth figures. Its revenue for the third quarter of 2015 was $2 billion 100 million, compared with an increase of 78% in the same period of 2014, at $1 billion 170 million. Historically, it was just below the 82% growth rate in the second quarter of this year.
, and even with such a successful revenue, Amazon CFO Brian Olsavsky at this afternoon’s earnings conference call, together with analysts developed a relatively conservative development strategy. "AW>